Learning pays

The Peter Principle (a term I’ve written about before) is an often-cited theory that observes that ‘people in any hierarchy tend to rise to their level of incompetence.'

In other words, people get promoted based on their skillset. And when they hit the limit of that skillset, they generally don’t get promoted, because they’ve literally hit a plateau.

While a little dated (it was based on book of the same name, written in 1969), the concept generally holds true even today. The lesson being that if don’t wish to hit a plateau, it’s best to keep learning so you surpass any potential limits.

It’s also better to invest in a quality education up front, if you can—because it’ll pay for itself over time by giving you the knowledge and skills you need to level up when you’re ready (as opposed to being held back by mere incompetence).

This is why—despite the high cost of tuition, and perhaps anything I may have said against it in the past—getting an advanced degree is likely a good idea.

And it’s why investing in learning new skills (and obtaining relevant certifications) is almost always a better way to spend your time than making money doing what you’re already good at.

If you can make double you’re worth by getting this job, by passing this course, by spending 6 hours a week studying for it, spending those hours studying now is a better way to spend your time than working 6 hours at your current rate.

I realize that for some people, this is an almost impossible suggestion. But for those privileged enough or able to make such choices, it’s a good framework to keep in mind as you make decisions about how and where to leverage your time and money.